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How to build a property portfolio of 10+ properties in a quick, short time frame
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- Опубліковано 30 вер 2014
- How to build a property portfolio of 10+ properties in a quick, short time frame - Part 1
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Loved reading the comments. I've been following this guy since the beginning and agree with everything he's doing. It's takes a certain type of person to understand what he's doing and how it works. The people who say it's a ponzi scheme etc and also the people who say where do you find properties for 200k etc etc well think outside the square...i just bought a property for 180k in an area where it should have been 240k.. after a 30k reno will rent for 330 per week and revalue at 285k that's how it works...also I got the property at 180k because it had an asbestos roof. Which put everyone off but doesn't affect being able to rent it etc etc ..think outside the box people to.succeed in property...take a educated risk!! Good luck
Matthew Suszko Hey mate,great work sounds like you’ve done well with that deal.Just a question because I’m new to this.Should you get a P & I loan or pay interest only? 👍
@@fatsnorkel this is a question for your finance strategist, as how you structure your loans is not a one-size-fits-all solution. You need to take in to consideration your current position and your future goals. A good finance strategist will look beyond the next property and structure your finances for long term wealth creation. If you still need help with this, please let us know!
why should it have been 240k if you got it for 180k? seems 180k is what it was worth and most were not prepared to do the work that would make it worth more (of course!). so you actually paid 210k to get an asbestos house up to standard (do you include time and labour?) where other people would buy it. Did it value at 285k or you just assuming? You say will get 330m per week in rent - did you? Also 330 per week on a house supposedly worth 285k is only a GROSS yield of 6%. Also at 180k I doubt you are in a capital city so good luck with the capital gain or getting your rent every week. Your buy was ok but not that great an certainly not going to help you get 10 properties where each one funds the next.
Dale Heremaia Just because a property isnt in a capital city doesn’t mean no one will rent it, are you dense?
@@daleheremaia946 usually after making the minimum upgrades the new appraised value would be higher. Any upgrades unless you do it yourself includes labor. Rents are base on what market is at that time, so you need to to an ROI. I have done fixup then refied to new value and bought another property. I have also bought with no money down no points or closing costs. Used Property Managers on all. Don't need the headache of dealing with prople. Used my tax returns from properties to buy or bring down the principle of mortgages.
Okay... Asking price 200k... Deposit 40k...So you have a 160k mortgage which gives you a neutral cash flow property, You then get a valuation (250k) and you get a new mortgage of 200k??? pay your 40k back to re invest elsewhere.... NOW!!! Are we in negative cash flow??? Rent hasn't increased has it??? to cater for the new 200k mortgage. I know this is only an example but....Please Explain Sir
Rather than just buy a home, see it increase in value and die later on, it better to buy 10 properties now and reap it benefit when you retire. Yes, property gonna crash once a while, but that crash does not zero down the value, you just need to wait for the price to bounce back after just a year or two.
Right on! :) The important thing is to make sure you have strategies in place to manage the worst case scenario and build a holistic, balanced property portfolio that supports itself. binvested.com.au/what-is-the-right-way-to-invest-in-property/
You tell that to people all around the world that lost their homes and went bankrupt. In today’s market buying at these melbourne/Sydney prices and holding highly leveraged is playing with serious fire
Molon Labe cash flow positive is rare in melb/Sydney
I buy regional
What if for property #1, you ask the seller to refinance at $210,000 and then take title subject to the existing (debt) for $200,000 and the seller pays the $10K closing costs? You would own the property with 84% LTV and positive cash flow with zero down payment, zero closing costs.
If you had zero cash out of pocket going into each property and net positive cash flow coming out, then how many income streams can you afford to acquire?
Maybe I missed something. But i'm pretty sure he says you've got 50k savings to start with and 30k min a year salary. He then says you buy a 200k house (do you use your deposit here? or is this interest only mortgage that no deposit is needed?).
So anyway you now have your 200k house which we know is worth 250k really because we got lucky and bought it under priced... so we go an get an 80% loan based on the 200k paid price on the home giving us 160k to buy our next property with. This seems fine. He then talks about 40k deposit + 10k fees ( do we take this out of the 160k we just borrowed?).
Immedaitely after this he says when then go and get another loan on the strength of the exact same first house we got our 160k loan from?.....this is what i dont understand. I do understand that he says to get it revalued which may make it the 250k the house is worth or slightly more... but how the fuck are you going to go and get another 80% fucking loan on the same house. Jesus cunt, introduce me to that bank manager.
and the people saying " well he has a big portfolio its all about mindset. " yeh he started 15 years ago. when it was 1/5th of its now price. times that by even 10 and then you have a pretty good headstart. there has been numerous property rises since then.
Well 20 years before him im sure the prices were lower & 20 from now the prices you see in the market now would be untouchable in the future. So don't diss the guy he has created an empire himself, try and learn if not just go back to your 9-5 and 5 years later you would be crying on how cheap could have got that property that was available in 2016
True, but if you never take action you will never be in a position to reap the benefits. There is opportunity at any point in time. The question is not about now, it's about where you want to be in the future? Will you be whining about even higher prices or sitting pretty on your equity and cash flow?
I have 3 houses and I am building another 2. I am following a much similar strategy and i am building them myself so I am creating instant equity. But for everyone else this does simply NOT work. firstly Dantes 15 years ago builders and other construction workers were paid 700-1000 per week average income. today it has gone up 100-300 dollar. house prices have gone up 200-300%. secondly the banks lending criteria has exponentially increased and they aren't so flexible. an average person with average saving cannot buy 10 houses in a year. they can only move as fast as their houses grow in equity. The idea is ok but they are making it out to be something special and its not that special.
oh and if you want to get any advice from not nathan but some other dude its $1000/hr.
blake Wallace ....If your successful its fantastic, but complaining on how he was successful because the prices were down then is a useless point. At any given point of time there are new opportunities and ways on money to be made. When Donald Trump started he did things many others thought outrageous or stupid but where did he end up??....so let ordinary people be ordinary, but let the extraordinary do extraordinary things
you are missing the point. THIS STRATEGY is NOT what he is saying it is. and you cannot judge his success based on him with a salary 10years ago similar to that of now and buying houses for a quarter of what they are now. so all im saying is stop brainwashing people and making them think its this easy because there are many many more factors in play
Thank you for all you bring to our economy and society.
Please explain?
+Andrew G
Sarcasm for "what is being described here is against the law in many countries and should be so too in Australia. It relates to what's called a ponzi scheme. It embodies parasitic practices which add zero value to the economy, represent tremendous risks, and worsen social inequality."
Couldn't agree anymore.
Everyone is delusional about the topic on Main Street. If you tell someone that their property is not going to increase at 10% compound until it reaches infinity they just laugh.
I might buy some of this guys properties at distressed levels when he eventually goes bunkrupt though.
Can you still do this in 2020?
of course you can Nathan said in one of his podcasts that 2020 was the best year so far for his portfolio in real-estate investing.
Where do you get the deposit for the second property for? You've spent it on the first one.
You save some more, and you withdraw the equity from your first one.
This strategy is predicated on the fact that prices will keep rising and rising. What happens when prices crash, as they inevitably do in EVERY free market? What is your strategy then? All I see is the upside but what do you do when things start going downhill. Look to the govt for help?
So your big secret is buy properties under market value. Revolutionary.
Actually, there are 3 key principles on which our strategies are based. :)
I wouldn’t personally choose this strategy. Far too much hassle, you could own two $1M properties in high growth suburbs and say they go up by 10% annually they’re now worth 1.1M each and you’ve generated 200k in equity in one yeah which you can draw out through a LOC non taxable. Far more manageable, sustainable and less the hassle. You’re not gonna make money easily investing in Old Kent Road, invest in Mayfair!
Problem with this is you can only actually borrow ~half as much because blue chips eats into your serviceability instantly. So right now to buy in Sydney personally, I can borrow 500k, but if I buy 4-5 places in Logan etc at 7% I can borrow $1m, and they would pay me money rather than me having to pay for Sydney place
But if you have a high income and not enough deposits to max out your serviceability and no plan to max out serviceability then your plan would be suitable, but it would still be hard to scale with 3% yields
Hey mate, I would love to buy a Credit Default Swap on you if they exist
I might short the mortgage insurers. It will be interesting to see how long they last when property is on the slide.
+Andrew G Yep, just look at the Moloneys in Moranbah....."savvy" investors who did what this guy is doing....now bankrupt and owe the banks 3 million+ lol
+Gram Stockley-Nines but they didnt do what nathin is doing. they bought in volatile mining markets, nathan teaches to buy in the inner city suburbs for a foundation where its way less risky.
I love how many investing experts have come out of the wood work ever since the big short came out 😂 everything outside of working a 9 to 5 has risk, it's about risk management, having an exit strategy and removing the emotion from the trade, and most importantly not risking money you can't afford to lose, so buy up all the credit swaps you wish, so long as you tick all these boxes first 👍
So after you pull out the $40,000 in equity, how does that allow you to buy another $200,000 property?
Will the banks lend you another 80%LVR of the next property, and you use the $40,000 equity as a deposit, is that how it works?
The equity can be used as a deposit for the next property. This works when markets rise, but unfortunately when they fall most of these guys will go to the wall. This is often because they are run with a negative cash flow and the banks will call in the loan when the LVR is too high. You must come up with more money to put into the loan to bring the LVR down or the will call it in.
Why not just take the 200 plus the 40 and buy six houses at 80% LTV -- 40, 40, 40, 40, 40 and 40, (240)?
Is there a part 2 ??
How about serviceability? The bank won’t throw money at you. You need to increase your income to borrow more money. Can you explain please?
Hey birchy, so if you have that extra 40k to buy another property, how are you gonna do it? 40k isn't enough to buy a property so what did I miss?
Dimitri Nikolakakis money to put down
Buy property with little to no money.
To get a loan (mortgage), bank need to see that you have downpayment money 10% or 20% from the property value. Other trick, you can always do under table deal with your property agent, without the bank knowing about it, to lower down such downpayment even more, like only 6%.
Increase Income portfolio without actually doing anything.
To sweeten your account further, you probably should just sell your first few home after just few short years, to increase your income statement, so that bank gonna let you take bigger loan. Hey you simply need to feed the bank once in a while, to get more from them.
Get new property below market value
Then your name gonna be VIP among many property developer. Instead you seeking for them, developer probably gonna let you buy right before they even start the construction. At time of that property first open for public to see, you already the owner and ready to reap the markup value. Then it is your decision to just sell right away or see it further increase after few years.
I don't understand! :(
Ponzi schemes don't make scene.
Hi, from your video, you mentioned that you would request for a valuation of your first property and get a loan on it for $250K. How can this be done when the first property is mortgaged to the bank that loan money to you the amount to buy it. You can't have one property mortgaged to 2 banks at the same time for twice the amount! Unless I understand your video wrongly.
whos paying the mortage ? its alotta hassle renting these places out not to mention the risk of the tenants messing the place up or not paying you
That's why you get a good property manager who manages your property like an investment asset :) (check out www.blinkproperty.com.au ) You can also have cash buffers and rent insurance in place if you do have some late paying tenants. :)
Everything in life is a risk. A risk is staying in a job you hate for 30 years.
How easy is it to get property below market value though ?
so if you structured yourself so that the equity will be enough to cover 20%deposit+legal fees etc on your next house you can keep purchasing an x amount of propertys? even if you then have 2milion in debt?
It's not quite as simple as that Jonathan, there's a few more factors involved, especially with lending restrictions having been tightened in the last couple of years. It's never been more important be educating yourself and have the right team of experts around you so you can avoid mistakes that might screw you long term. Nathan has been doing a RAW and UNCUT series of webinars over the last couple of weeks, have you seen any of them? The last one is tonight and you can register here if you're interested: goo.gl/MoUNXc
Were do you find a house for 200,000 in Sydney ?
+Abel Warland They are there, you just have to look.
+Jacob Kilgore any sources that u recommend?
+Jacob Kilgore Bullshit, not onles they have serious problems.
maybe in the hood
Caravan park cabin with land rental :)
9 years ago it would be easier when interest rates were lower. Right now in 2024 interest rates are higher so this strategy would be slower
Would you ever invest in low income, high crime areas?
They call that gentrification!
Nathan, what's your opinion on whether this strategy is still relevant in 2017?
Hi Nicole, the principles still apply however it will likely take longer in today's market due to changes within the finance environment. The best detailed answer to your question can be found here binvested.com.au/nathan-birch-start-investing-today/ we Nathan outlines how we would go about quickly building a portfolio today.
Thanks
Why do you only have $250,000 passive income per year if you have 74 properties?
Hi Michel, today Nathan's got over 200+ properties, a $50M property portfolio and $2M+ in passive income. Also as an FYI Nathan's goal wasn't for instant cash flow. Rather, he focused on delaying gratification and favored long term net wealth.
Where's part 2?
how or where do you find below market value properties?
Nathan has 3 key criteria when it comes to investing in property.The majority of the properties we source are below market value, have good upside for capital growth and have neutral or positive cashflow. This strategy can apply to property investment all around the globe. Here in Australia, Nathan has worked really hard over the course of 15 years of investing to build up a good network of contacts, making it easier to source properties that fit with what Nathan believes is important for building a profitable property portfolio. As our reputation in the industry has grown, we have people approaching us with such properties because they trust us and respect our expertise :)
what about cash flow? How can you maintain the cash flow for paying strata, council rates etc. Also, your income is limited; so how will bank approve the loan? Can anyone advise?
Hi there, this is something to speak to a finance expert about ... we can put you in touch with someone if you would like us to?
yes please 200k property in Sydney !!
Are you doing this as a company, trust or private person?
How you structure your purchases depends on your goals and what the best strategy to achieving them will be. That’s why we sit down with people and have a comprehensive discovery call so that we can understand specifically what our clients wants and needs are.
I ask the question to every person who sets themselves up as advisors If you have a formula that works why are you flogging your services like this If it was easy you would not be selling but sitting back as I do and invest ?????
Hi there, good question. For Nathan and Danie,l it's about being at a point in life where they want to give back. They also enjoy helping others. The don't need to work, they were retired self-made millionaires before they even started a buyers agency. Here's some more in their own words ua-cam.com/video/b048SF88_g4/v-deo.html
You don't need to set up an agency to help other Property Investors I network all the time I am happy to share experiences with others who want to invest I don't charge a penny You are making money out of this your not doing it for free or the goodness of your heart are you
That's exactly how Daniel and Nathan started too. Very soon they realized they needed the support of a professional team to help them, and also help their investors in other specialist areas related to property. If anyone cares to get in touch and ask more they will find that the fees of all of the Binvested.com.au group of companies are very reasonable. While Nathan and Daniel are generous with their time, they wouldn't expect any of the staff to work for free, that would be unethical.
anyone who wants to go into property investment can do it alone you don't need to pay anyone for advice most of it is free all you need to do is find and area you want to invest in research it yourself and arrange finance yu will not get it 100% right no one ever gets it totally right but you will learn quickly once you understand what you want from property you can then duplicate the process again and again You will need an accountant you wil need a Mortgage Broker Its not hard
exactly what i thought. I asked for a quote to speak with one of the 2 partners not nathan but some other dude, it is $1000 for 1 hour. ??? what can he tell me in 1 hour that is worth 1000? The only thing worth that may be a network of good property accountants. but in a physical hour you cannot tell anyone jack for 1k. soon as they said that it was clear this is a money making operation and not a helpful advisory making average gains. its a get quick rich scheme enticing people who have the mentality of " If i spend x amount now it is a good investment because in the long run it will pay off" yes it does, but nothing can be done in 1 hour for 1k. thats just an insult to our intelligence.
Does pulling out equity affect how much you still owe on the house?
Yes, your 'debt' on the original house would increase equal to the amount of equity you pull out. However, you could put this down as cash for your next purchase...reducing the debt burden on the new property.
Binvested Thank you
where do you find below market properties??
In many ways, we have a team to do this. You may like to read these articles binvested.com.au/6-reasons-why-properties-are-sold-below-market-value/ and binvested.com.au/how-to-buy-property-below-market-value/
Cool hair. You're awesome man.
starts 2.12
Where do you find properties in Sydney for $200000???
You'd be surprised! Are you subscribed to our newsletter? We sent a list out of some of our current available properties last night, including a Sydney unit for $232K.
So it all hinges on finding someone daft enough or desperate enough to hand you loads of money by selling their property well below market value!
No. Simply put. You don't seem to understand what we do ...
What is some of the signs that a house is below market value?
Hi Jonas, great question! Here’s six reasons Nathan says properties are sold below market value. Let us know if you have any more questions :) goo.gl/JdJ7Rw Are you are thinking about purchasing property?
Can Americans buy and hold properties in Australia
It depends on what your visa status is?
Appreciate your efforts however, it's so very difficult for me to understand your heavy accent. This was spoken in English I realize but sounds like it was spoken and twisted thru a 100 meter long concrete pipe! Could also be the distance between the US. and Australia at approx. 9,500 mi (15,000km).
Australia is stuck in one of the biggest housing bubbles in the world.
We should have learnt from your country sir, instead we thought we were smarter and we will pay the price for our mistake.
I can’t even get one 😅
So I just buy properties at a $50,000 discount! Brilliant! Then I go and get dozens of mortgages. What an amazing strategy.
+Bruce Halton Yeah, esp buying a house in Sydney for $200K....hes full of shit.
Great idea
What if someone buys 30 houses all on mortgages but producing passive income, and there is a crash in the market? Are they all fucked
its called leveraging, its good not to be so gready and over do it cause if that ever happens well say hello to mr bankruptcy
The biggest flaw I see here is that your first property would’ve been net zero profit. That means if you take on your larger second mortgage and cash out 40 k, you will be in the red
Why do you make that assumption?
Binvested because you said at 3:49 that it’s a neutral cash flow property. That means that if you take out any more money, you will have no extra money coming from that initial net zero (neuteral) cash flow property to pay that new loan. Hence you will be in the red
@@ezzireifer6479 The money comes from the additional property to pay for the additional loan. Unless I am misunderstanding your point?
$0 in cash flow means your ROI is 0.... doesn't matter how many houses you own if they aren't generating any cashflow
Capital growth?
Capital growth is merely icing, not a sound business strategy
I want to buy a million properties....this dude is small fry....
How's that going for you?
Binvested ... I'm up to 50000 properties....bit I'm thinking of selling half...and shoving the proceeds square up my arse
Congratulations! Sounds like you have a solid strategy for moving forward.
Look up kris krohn he legitimately has 100 of thousands of property
This is not correct. You gave a $0 dollar monthly loss and gain based on a t$200K loan. Then you showed a return 40K in your pocket with a loan based on $250K. You may have money back in your pocket, but now you have a larger loan and therefore, have a negative cash flow on your property. With a negative cash flow, you will not be able to buy but maybe one or two houses. On top of this, the banks see a $0 cash flow as a negative on your LVR as they will not give you full credit for the rent. The Banks exclude 25% for repairs. I suggest you be more detailed, as this is very miss leading. Nice try rich guy. Bad Math.
+Tammy Giezentanner It was actually a loan based on $160k if you look again. He was able to leverage up to 80% thereby allowing (250kx0.8)-160k = $40k additional loan. That being said, he did assume that his cash flow remained the same even with a bigger loan. I didnt know about the 25% repairs exclusion.
Nifty
Poly pocket
how can a person who has no cash get into this business
There's no way around it. The hardest part of this business is often doing what it takes to get started, ie saving.
Banks will only let you have a max of 2 mortgages in your name
Not sure which banks you have been speaking to but you can definitely get as many mortgages as you can service with your income. Sounds like you could maybe use a second opinion from a finance strategist? Zinger Finance specialize in financing large property portfolios for investors.
A little greedy, surely if everyone done what your saying the prices will sky rocket.
Even if that's what happened, that's a good thing for property owners 😂
Buy property for 200k and it will rent 300-320 week no way in the real world dreamer
The numbers are real, I am sorry that you have had an experience that makes you believe this is not possible.
good information if i could stay awake....so boring
one factor, you get laid off and so do your renters
who's going to sell you their house for 200k if it's worth 250k?
Eric Suh sellers that are desperate for cash maybe..since they are unable to find a buyer
Eric Suh No one will. The not explicitly spoken implication is that the value of housing will continue to rise. Notice also how he mentions getting the house revalued as quickly as possible (he uses the big four banks as they will revalue properties within a year). The idea is that once the house you bought for $200k becomes worth $250k you can move on and buy your next property.
This is basically a ponzi scheme. It is a bubble>market crash waiting to happen.
Guess it doesn't matter if poor people (by reduced government spending, or 'austerity') and now middle class people pick up the bill as has happened since 2008......!
Well someone doesn't really understand property investing and how incredibly stringent the banks are. Why would you *not* get it revalued to realease that equity ASAP?
Some people who would sell for $50k less than market value- divorcees, bankrupts, estate sales, off market, those that want demanding settlement terms, those who have crap REA's that don't value it correctly, those that can't find a buyer, buying blocks of units for big discounts, having the right contacts in the industry, unloved properties, distressed vendor, developer needing to sell to get bank finance etc etc
People like you have been calling a property market crash for at least 14 years and continue losing out. There's hundreds of property markets each in their own cycles yet you'll make a silly generalistic statement that they'll all burst at the same time. So what if the Sydney median is $1m? $50k was a record at some stage. It'll be $10m before you know it.
Growth will slow and stabilise but that will be about it. Worried about another GFC? Don't be, Sydney dropped a measly 10% and has almost doubled since then.
If the only buyer you can find is at $200k then surely that is the value. You should wake up and realise it's a Ponzi scheme.
Wow you should educate yourself on property. It's one thing to invest at the beginning knowing that it's a Ponzi scheme, but to think it can go on indefinitely... Well you are delusional like the rest of oz.
Buy property 10k
Yes, those properties are awesome, when you know how to get them!
Lol so u saying buy the first house paid off?
"Buy the first house paid off" doesn't make sense ... and I don't think that was said, no.
250k house, buy it for 200k, get a mortage out of the existing house for 160k? (@4.05 u said it) @ a 80 % loan
It's not clear what you mean by "buy the first house paid off" ... if you could clarify your question, I'll be able to confirm what we meant ...
buying the first house with pretty much no mortgage is what i ment
I think you have maybe misunderstood, we never said you can buy the first property with pretty much no mortgage. We mention that the first property is bought for $200K, which at the time of filming, was the entry price for the bread and butter properties we sourced. The mortgage at 80% LVR would be $160K.
Anyone want to sell me a house for $50,000 less than it’s worth?
don't exploit people why are your chages so high
Hi Mahlangu, unlike other companies that appear to do things free of charge, we don't get big kickbacks (which would be factored into the overvalued purchase cost). We don't hide any of our fees. I hope you can see that by providing a service for a transparent fee we are not exploiting people.
I understand you thanks for the clarity
You lost me at $200,000 initial investment 😩
Hi Jaykeia, there are plenty of opportunities to get in to the market with a lower initial investment. :)
its just an example
Worst audio. Every video sucks
"Every video sucks" yet you took the time to leave comments about several of them. If you worried less about the quality of the audio (we're property investment experts - not videographers) and actually listened to the content, which can be heard perfectly fine, you may actually be focusing on channeling your negative attitude into something more positive that will actually improve your life. If you have actual constructive feedback, we'd love to hear it, but stupid comments like this are just a waste of everyone's time.
Maybe I missed something. But i'm pretty sure he says you've got 50k savings to start with and 30k min a year salary. He then says you buy a 200k house (do you use your deposit here? or is this interest only mortgage that no deposit is needed?).
So anyway you now have your 200k house which we know is worth 250k really because we got lucky and bought it under priced... so we go an get an 80% loan based on the 200k paid price on the home giving us 160k to buy our next property with. This seems fine. He then talks about 40k deposit + 10k fees ( do we take this out of the 160k we just borrowed?).
Immedaitely after this he says when then go and get another loan on the strength of the exact same first house we got our 160k loan from?.....this is what i dont understand. I do understand that he says to get it revalued which may make it the 250k the house is worth or slightly more... but how the fuck are you going to go and get another 80% fucking loan on the same house. Jesus cunt, introduce me to that bank manager.
Housing as an investment is just a giant Ponzi scheme that always explodes.
I think he means to say that you take the 50k revalued from the bank... Then use that as a deposit for the next house...
What will really happen is these houses generally are not cash flow positive. When the market turns south and people can not extend their loans to pick up the inevitable slack in the housing market. The prices will collapse and the banks will call in their loans because your loan to value ratio will be shot to pieces and you also be cash flow negative and go bankrupt.
lost me too there. I agree that he was using equity from the first house to buy the second without having any additional cash. Most banks have stopped letting this happen and often require hard cash for subsequent purchases. He might be able to make this happen because he has a relationship with his lender but most people cant get the 2nd loan.
He is using hard cash. It's the money he realized from refinancing the first house. However, It's obvious, he had to have a $40k down payment available to buy the first house in the first place. He's daisy-chaining his down payments from one house to the next. However, too in theory, he's building $50,000 in equity on each new purchase, so by the fourth house, he has $200k in equity. Never mind there's still no cash flow, and he offered no analysis on why that's the case. I assume that 50% of the rent goes to overhead (taxes, insurance, HOA, principal, interest and maintenance)